Financing for renewable energy projects

Most of the cost of a corporate or personal renewable energy installation
can be funded through federal and state rebates, but the remainder
is what stops most people. Here is what I know about that.
There are many other sources of information.

Federal 30% and Georgia 35% rebates add up to 65% (see below under
DSIRE).
That’s for solar (PV or hot water), wind, and some other related items.

The other 35% is what stops most businesses and people.
35% of a $25,000 house solar system is still $8,750.
People like that it will pay itself off in 9-15 years,
but most people don’t have $8,750 to invest.

That’s a business opportunity for some enterprising local bank or banks.
As
Dr. Noll has explained,
if you pay for that remainder yourself,
the system will pay itself off in about 9 years.
If you get a bank to finance it, more like 15 years.
And local banks currently require collateral other than the system itself
(they like real estate as collateral).
The simplest business opportunity is for a local bank to accept
the solar equipment itself as collateral.
After all, it’s worth 65/35 or 185% of the total loan amount.

The
USDA REAP grants
(like
the one I just got)
are all allocated for this year, and it’s not
clear what Congress is going to do about them next year. I hear
at the least they’re changing them from grants to rebates, and they
may not fund them at all.

DSIRE for Georgia

Both the corporate and personal tax credits are under the same program:

“As part of the Georgia Energy Challenge, Georgia offers tax credits
for certain types of energy efficienct and renewable energy property
as well as for the delivery of wood residuals to qualified biomass
facilities. The credits will be available to taxpayers placing qualified
clean energy property in service between July 1, 2008, and December 31,
2014. The program’s annual cap is $2.5 million for 2008 through 2011
and $5 million for 2012 through 2014.”

Several EMCs in the state have utility loan or rebate programs.
Maybe the Chamber could help convince Colquitt EMC to do the same.

Several Georgia cities have local loan or rebate programs, or energy standards
for public buildings.
Maybe the Chamber could help convince Valdosta or Hahira or Lake Park
or Remerton or Dasher to do some of that.

So, basically anyone can get 65% off the installation of a moderate-sized
solar array.
For the remaining 35%, there are some solutions such as Solar Mosaic
and SolarCity, and a business opportunity for local banks.
Systems from 1-5 megawatts might attract venture capital financing.
Plus there are many special cases, for example for public housing.